Saudi Crown Prince Mohammed bin Salman has said the country has met its promise to the US to make up for lost Iranian supplies from US sanctions.
Last week, Prince Mohammed told Bloomberg: “The request that America made to Saudi Arabia and other OPEC countries is to be sure that if there is any loss of supply from Iran, that we will supply that.”
He added: “Iran reduced their exports by 700,000 barrels a day, if I’m not mistaken. And Saudi Arabia and OPEC and non-OPEC countries, they’ve produced 1.5 million barrels a day. So, we export as much as 2 barrels for any barrel that disappeared from Iran recently. So we did our job and more.”
Russia and Saudi Arabi informed the US of their plans to increase oil output through a private deal to help ease prices.
US President Donald Trump has previously blamed high oil prices on OPEC and has called on the bloc to raise production to reduce the cost of fuel.
Iran has accused the US of arranging the oil price hike with the use of its sanctions on Tehran and suggested its regional rival had caved to Trump’s pressure.
The Saudi crown prince said the rise in prices witnessed in recent months was not due to Iran.
“We believe the higher price that we have in the last month, it’s not because of Iran. It’s mostly because of things happening in Canada, and Mexico, Libya, Venezuela and other countries that moved the price a little bit higher,” he told Bloomberg.
“But Iran, definitely no. Because they reduced 700,000 barrels and we’ve exported more than 1.5 million barrels a day.”
Saudi Arabia is now producing 10.7 million barrels per day and has capacity to increase this by a further 1.3 million bpd if required by the market.